Accounting interview questions.

What is Service Tax & Excise? How will it be charged?

Service Tax is a form of indirect tax imposed on specified services called Taxable services. Presently it covers 58 services. The service provider but A collected shall pay a service tax from the service receiver. Excise is also a form of indirect tax levied on A goods produced or manufactured in India.
Where should TDS received should show in balance sheet?

TDS either can be deducted by other on payment/income we receive or we deduct on paymnet/expenditure we make to others. In first instance TDS will be shown in Assets side in balance sheets under current assets and in second instance TDS will be shown in balance sheet under current liability. TDS is part of advance tax for the deductee while for deductor its current liability.
What is the difference between inactive accounts and dormant account?

Inactive account means an account had not been in use for a long time and not going to be used in the future.Dormant accounts are those which are presently not in use but it is likely that it may be used in the near future.
How many accounting standards are currently published?

There are total of 9 accounting standards. ICAI issued a total of 33 accounting standards tillnow.Their applicability depends on the LEVEL of enterprises.It depicted three tier structure.

What are the fictitious assets ?

These are like intangible assets, which cannot be seen or touched. Actually, these are not assets but some expenditure, which cannot turn to profit and loss account of a particular period that is why these items are shown on assets side of balance sheet to be written off to P&L account in reasonable years.

also p&l account will be prepared. multi-currency capabilities. yet simple to use accounting system. CPAs who work in public accounting review company financial records for accuracy and accountability What are the Steps involved in Project implementation? Step involved in project implementation: ► Identification of the need ► Idea generation and screening of ideas ► Feasibility Study . Whereas in the Periodic Inventory System: .input tax the vat which is paid on purchase will be deducted from vat collected from sales this adjustment is known as vat adjustment What is Executive Accounting? Executive Accounting is designed for service type businesses that require a sophisticated accountingsystem. the inventory account is adjusted continually throughout the accounting period. Executive Accounting contains many advanced features such as three styles of invoicing (service.What is the difference between Perpetual and Periodic Inventory systems? In perpetual inventory system. What is Departmental Accounting? Give an example? Departmental accounting means account prepared separately for the department and here ledgers will be opened trial balance will be prepared. and profit or loss is included in the main p&l account and shown in the balance sheet What are premises in accounting sense? What is VAT adjustment? Premises is and Fixed Assed in the accounting sense which is shown in the balance sheet in final accounts Vat adjustment is out put tax .Recording inventory transactions periodically than recording them continually. multiple bank account capabilities and other powerful features. Executive is a single-user system that can be upgraded to an unlimited number of users. distribution and recurrent). What is meant by public accounting? Public Accounting is best known for providing audits.

What is Purchase returns Accounting? "Purchase returns" is the entry made in the journal that refers to "Unsatisfactory or defectivemerchandise/goods which is returned back to the supplier". The "Big 4" (KPMG. Every company has some form of an internal accounting department and those employees would be considered private accountants. Private accounting is accounting work that is done for your own company. . etc. Accounting means recording of day today transaction whereas auditing means rechecking of that transaction it is properly recorded or not.if follow the both aspects (dr. Deloitte & Touch?Price Waterhouse Coopers. Exampleswould be audits. Bank reconciliation statement statement which reconciles the bank balance as per the cash book with balance as per the pass book or bank statement by showing all causes of difference between the two. tax compliance. This statement shows the reasons or transactions because of whichbalances as shown in cashbook and passbook are not tallying with each other. and Ernst & Young) are the dominant firms that provide public accounting services.ct) in business that is called dual aspects of business. consulting.► Project Development ► Implementation ► Controlling What is bank reconciliation statement? A Bank reconciliation statements are prepared if balance of bank account as shown in cashbook differs from balance as shown in passbook. What is the dual aspect concept? according to dual aspect concept every business have two concept of business transaction one is debit second is credit transaction. What are the differences between accounting and auditing? Accounting records the events. What is a difference between public and private accounting? Public accounting includes any accounting work that a company performs for another company. Auditing is a process that checks to see whether the events occurred and it is properly recorded.

if we are looking about Ford motor corp. Consignee is the person who receives the goods and he just possesses the goods and not the owner. For example.g. . their may be too much to analyze. there is too much data to go through all this. Demonstrate your knowledge of this cycle . so we take a sample. What are bills receivable? Bills Receivable . the marginal cost is the derivative of total production costs with respect to the level of output. bonds. bills of exchange. and looking at some specific data.and what the implications of the length of this cycle are for the company. are all promissory notes. the normal people) rather than business or organizational customers What is marginal cost? The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. and other evidences or securities which a merchant or trader holds. and which are payable to him What is the difference between Consigner and Consignee? Consigner is the person who is the owner of the goods and who deliver the goods to the consignee. in many accounting situations. Statistics tells us what sample size we need What is accrual accounting? Accrual Accounting refers to the recording of financial transactions once an economic event has happened and it is not based on the movement of cash.the length of time it takes the company to pay its accounts payable . for example cash flow What is meant by balancing? Balancing means equalizing debit and credit side totals in a T-account What is Use of statistics in accounting? Well.What is retail banking? Retail banking refers to the banking done with the retail client (e. Explain the accounts payable cycle. Then we need to know how big a sample to take so we can say with 95% confidence that our results are representative of all the data. More formally. in merchant accounts..

Service tax charged at rate 12 %( India) + 3% E.Cess & H. & E.What is depreciation and how many types are there. What are cost accounting and its applications? Cost Accounting is a method by which an accountant can determine the cost of production of a "widget". It gets more complicated than that but this is a good generic answer. which income is excess under thetax then company liable for the pay tax. improvement.36% When any employer provides any service to his customer.Cess =12. What is service tax? When any employer provides any service to his customer. and planning. which is similar kind of response by a system. Accounting is the presentation and interpretation of those records to be used by management for decision making. Like machines/vehicles gets rusty/slow because of consistent use What is the difference between provision and reverse? Provisions are created in books as they are anticipated. Example: provision for depreciation Reserves are created in books as a part of profits. This is used in accurate reporting of Cost of Goods Sold and consequently the Gross Income of a company. which income is excess under thetax then company liable for the pay tax. Service tax charged at rate 12 %( India) + 3% E. Please give details Depreciation and its types: Depreciation means reducing/lowering value of an asset because of its use.36% Contrast bookkeeping and accounting Bookkeeping is the maintenance of the company's financial records. .Cess & H. A Cost Accountant will follow the "widget" throughout the production process tracking any costs associated and breaking them down to a unit level. which might used to purchase assets or to declare dividends What is meant by partitioning? Partitioning is nothing but grouping based on the cluster.Cess =12. & E.

no attempt is made a separate record of the financial account transaction .their are 2 columns in balance sheet left hand side is called liabilities and right hand side is called asset What is dividend warrants? Dividend is the part of profits payable to the owners of the company i. payments etc. it is often the case that there is no liquid market for an asset..e. This is easy to do when the asset has a quoted market price. companies are sometimes forced to place a very low value on an asset. What is an interlocking accounting system? The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other. and thus the company has to make an estimate of fair value. receipts. as it has been for much of 2008.. Shareholders. sales. A trade bill is a supporting documentof business activities like purchases. What is definition of a cash float in accounting? Cash float is the time between when you authorize a bank to disperse funds from your bank account and when it actually leaves your account What is fair value accounting? Fair Value accounting is an accounting term that requires a company to place a value on all of the assets on its balance sheet that.What are trade bills? Every transaction must be supported by any document. See related links for complete explanations What is balance sheet and off balance sheet? Balance sheet is a statement which consists if asset and liabilities balance sheet is not called as account . When the marketplace is in turmoil and illiquid. It is an example of professional ethics. the study of moral values and judgments as they apply to accountancy. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details. and in the cost account. it is the price at which the assets could be sold. What is cash flow and fund flow? Cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement. What is accounting ethics? Accounting ethics is primarily a field of applied ethics. resulting in a substantial markdown from the prior value. However.

quality. i. It was done to see if the added benefit of a capital purchase. What is SLA? SLA . This set includes that of invoices. Then continue to explain how you can meet this challenge. shipping documents. What is meaning of invoice? invoice is a document which is issued the the salesmen to buyer contain information related to purchased good such what purchased.quantity. keeping method a journal entry is posted to both respective accounts for each transaction What is Capital Budget? Capital Budgeting is a way to justify capital expenditures. What are the uses of journal in accounting? The journal is most commonly used to record corrections to errors that have been made in writing up the general ledger accounts .Service Level Agreement Period What is peach tree accounting? Peachtree Accounting is the name of a computerized accounting software program. invoice no. buyer contract etc What do you consider to be the biggest challenge facing theaccounting profession today A sample answer to accounting interview questions like this is: In response to the changing market accountancy professionals have to provide moremanagement and consulting services.price. increased revenue or decreased expense. They have to assume a greater advisory role and develop more complex and flexible accounting systems.e. exceeds the cost of capital. in addition to financial management. What is the TDS effect in balance sheet if TDS receipts? In Assets Side: Advance In-Come-Tax A/c Dr with TDS received Amount and Party A/c Cr with TDS received Amount What is double entry book keeping? In double entry book.What is Letter of Credit? LC (Letter of Credit) is a set of documents which are very essential for goods being transported from one country to grantees and others.

income statements. If we receive a bill from that debtor. etc What is the difference of Cost Accounting and Financial Accounting? Financial accounting encompasses all account presented on the face of the financial statement. When we sold goods to debtors account is debited. Where as costaccounting is only focused on the cost of inventory. What is an adjusting journal entry? Adjusting entries are those entries that passed to rectify an error or wrong entry already made some accounting soft wares have disabled edit function in the accounts. and auditing the books of a firm. What are the basic assumptions in accounting? Economic Entity Assumption Going Concern Assumption Monetary Unit Periodicity Assumption What is customer account? Debtors account and bills receivable account are theoretically same. If the bill is dishonored on the due date. it involves the theory of credit and debit.Key Difference between Indian accounting standards and internationalaccounting standards is? In international accounting LIFO and extraordinary items are prohibited. recognition. purchases. work sheets. subsidiary ledgers. Both are called as receivables. Thus. overhead. measurement and disclosures. What is the definition of accounting? The theory and system of setting up. controlling accounting accounts. What are the nine accounting cycles? Explain Accounting 101? Typically. its presentation. depreciation methods. bills receivable account is nothing but debtor account. . andfinancial accounting theory. art of analyzing the financial position and operating results of a business house from a study of its sales. so the only way to undo the mistake is to pass a correction entry or adjusting entry. balance sheets. maintaining. we open bills receivable account by closing that debtor account.

which any business concern use any time when they relies. For information and accounting purpose. we use both debtor account and bills receivable account. exp. depreciation Account. ESIC accounts.we again debit the debtor account in our books. EPF accounts. In every organisation there is limited source of capital and can not able to pay hues certain. Some of the smaller ones: Businesses will use them to calculate payroll and the accounting firm will calculate the amount of taxes taken out. What is the Provision? What is the Entry for Provision? Provision means liabilities it means payable account A it?s an very useful for controlling payable accounts like telephone charges. A EPF payable accounts Dr to EPF accounts ESIC payable accounts Dr to ESIC account. . so every organisation transfer some amount to provision account. Provision Account is Prepared for fixed future liabilities. Reserve & surplus Account Why are accounting firms needed? Accounting firms come in handy for many reasons.

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